Here’s what you need to know about the shift in our housing market.

The real estate market can turn on a dime. Are we experiencing a shift or the beginning of a crash? Today I want to look at our market statistics, our interest rates, and the future of our market.

Listings, pending sales, and closed sales are all down about 20% in San Luis Obispo. Our county has about 272,177 people, but there are only 186 homes available for sale. If you’re a buyer, there just aren’t many options out there.

Meanwhile, prices are up across the board. For example, the average price in Nipomo is up 20% year over year. For Paso Robles, the average price has increased by 30%. For the city of San Luis Obispo, the average price is up 34%. These are huge jumps, and buyers are feeling them in their pocketbooks.

“Our market is still great for sellers, it's just not at crazy as it was.”

To deal with rising prices, low inventory, and higher interest rates, buyers are getting creative. Some are switching to five- or seven-year fixed loans, which have more attractive rates than the conventional 30-year fixed loan. Most people only stay in their homes for five to seven years anyway, so this is a great option for some.

So is our market shifting, or is a bubble popping? I can say with confidence that we are not in a housing bubble. The defining feature of our market is that we don’t have enough homes. Many real estate experts agree that this was caused by the underproduction of homes. Since our population continues to increase, there will be strong demand for years to come.

That said, we are in the middle of a shift. Some homes that would have sold in days with multiple offers a few months ago will now sell in a few weeks. Sellers are still receiving great deals, but offers way over the asking price are becoming less common. However, full-price offers are still the norm, and that means our market is still great for sellers. It just isn’t at the breakneck pace it was recently.

If you have questions about today’s topic, please call or email me. I’d love to speak with you. Also, look out for the new Hal Sweasey podcast!